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Park Place: Dispute may go to court

Posted 9/5/17

It now appears as though a judge may make a determination regarding development fees the town says is owed for the Park Place project on Avenue of the Fountains.

N-Shea Group and its principal, …

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Park Place: Dispute may go to court

Posted

It now appears as though a judge may make a determination regarding development fees the town says is owed for the Park Place project on Avenue of the Fountains.

N-Shea Group and its principal, Bart Shea, have filed for a temporary restraining order to prevent the town from shutting down construction for $453,611 in unpaid development fees.

Town Manager Grady Miller sent a letter to Shea dated Aug. 23, asking for $250,000 against what the town says it is owed. In his letter, Miller set Thursday, Sept. 7, as the day the town would stop construction if the funds are not paid immediately. Miller said he would continue to seek compliance up until that date.

Even then it is unclear what will happen as Thursday is the date set by the judge for the parties to be in court to determine whether the order will be issued, and what the next steps will be.

Shea’s court filing states that “an emergency intervention by the court is needed to bar defendant from shutting down the project until the right to development fees cause of action is resolved.”

Shea also states as points of factual background in the filing that he entered into the development agreement to ensure that his obligations to the town were specifically defined.

He adds that the development agreement contains no obligation that requires plaintiff to pay a development fee.

“No development fee is owed by the plaintiff to the town,” Shea’s claim goes on to state.

Town Attorney Andrew McGuire told The Times the biggest issue the town has with the claim is that if in fact the town were to waive development fees, state law requires that the town pay those fees on behalf of the developer. McGuire said that was never the town’s intention in the course of negotiating the agreement.

Shea warns that the consequences of a shutdown would be devastating.

“If the town were to shut down the project after building permits were issued and after construction was well on its way, that shutdown would likely cause devastating impacts at the project and would likely lead to the project not being completed.”

In seeking relief, Shea states “an actual, justifiable controversy exists between the [town] and [Shea] regarding whether [Shea] is required to pay development fees in connection with the project.”

In his letter Miller indicates that Shea had requested town amend the development agreement to waive fees for Phase I of the project.

Miller said he could not disclose discussion that went on in a closed executive session of the council; however, he did state staff would not be preparing an amendment to the agreement.

Miller states that he arrived at the $250,000 payment, slightly more than half what is owed, as a result of a discussion he had with Shea in an effort to resolve the controversy.

“During our discussions you mentioned that you have $250,000 cash on hand that was earmarked for the purchase of public art…This amount should be paid immediately against the balance of your outstanding development fees.

“This would demonstrate good faith effort on your part to bring the…project into compliance.”

He stated, however, that the payment does not change the total amount still owned nor does it change the amount owned for public art at or before the time a certificate of occupancy is issued.